A senior official at the Bank for International Settlements (BIS) is reportedly urging financial regulators around the world to move on to an international regulatory framework for Cryptocurrencies to agree.
Benoît Cœuré, head of the BIS Innovation Center, tells the Financial Times that the explosion in decentralized finance (DeFi) created a “compelling reason” to lay down global principles for crypto regulation.
Cœuré, a French economist, says DeFi’s potential entanglement with the traditional financial system creates new forms of systemic risk.
He says the Financial Stability Board (FSB), an international body that oversees the global financial system and makes recommendations, would be a good place to start building a global framework for crypto regulation. He believes finance ministers could agree on such a framework sometime next year.
According to Cœuré, the framework should classify whether stablecoins are e-money, securities, or money market funds. He also supports the ban on pension funds from investing in cryptocurrencies.
“[Investing in crypto] seems to contradict the security one expects from a pension fund. “
The economist also notes that recently there has been increased talk of creating a global crypto regulatory framework.
“Now that it’s growing really fast and … becoming mainstream in various ways, the time has certainly come for rigorous regulation.”
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Source: Crypto News Deutsch